Old regime vs new regime — which should I choose?
The new tax regime has lower slab rates but disallows most exemptions and deductions — only the ₹75,000 standard deduction applies. The old regime has higher rates but lets you claim 80C investments (up to ₹1.5L), 80D health insurance, HRA exemption, home loan interest, and more. If your total deductions are large enough, the old regime can work out cheaper — this calculator compares both using your actual numbers.
What counts as an old-regime deduction?
Common ones include Section 80C (PF, ELSS, life insurance, up to ₹1.5L), Section 80D (health insurance premiums), HRA exemption (use the HRA calculator to work this out), and home loan interest under Section 24(b) (up to ₹2L for a self-occupied property). Add up whatever you actually claim — the new regime doesn't use this figure.
What isn't included in this estimate?
This calculator assumes a salaried individual below 60 with no other income, and doesn't account for surcharge (which applies above ₹50L income) or marginal relief on surcharge. Treat it as a close estimate to guide your regime choice, not a substitute for a tax professional's advice.